The latest Fiserv Small Business Index for July finds that retail spending growth remained strong — and a number of individual categories showed year-over-year gains.
Year-over-year retail sales (+4.6%) and transactions (+5.8%) both grew, as did other retail subsectors vs. June. General Merchandise (+10.9%) led retail in yearly growth, followed by Health and Personal Care (+8.6%), Building Equipment and Garden Materials (+6.2%), Food and Beverage Retailers (+4.9) and Furniture, Electronics and Appliances (+4.7%).
On a monthly basis, retail sales were up 2.5%, Transactions (+0.1%) edged higher, as increased average ticket sizes drove short-term spending — even as foot traffic remained relatively flat.
Motor Vehicle and Parts Dealers (+4.8%) and Furniture, Electronics and Appliances (+4.8%) led growth compared to June, followed by General Merchandise (+3.5%) and Health and Personal Care (+3.1%).
On a year-over-year basis, small business sales (+3.5%) and transactions (+3.3%) grew. Month-over-month small business sales were up +1.3%, despite transactions slightly declining (-0.7%).
“Consumer spending patterns continue to shift, most notably with Retail spend experiencing a decisive bounce back compared to June,” said Prasanna Dhore, Chief Data Officer at Fiserv. “Specialty trade and professional services also performed very well due to seasonal demand and stabilizing inflation rates.”
Fiserv, which provides payment and financial services technology, said it was a tough month for restaurants, however. Sales declined 1.6%, despite modest growth in foot traffic (+0.7%). Consumers dining out have also seen a big decrease in average ticket size (-2.4%) vs. July 2023.
Month-over-month restaurant sales (-3.1%) and transactions (-1.4%) both fell vs. June 2024, the second straight month of slowing restaurant sales and foot traffic. Similar to the yearly trend, average ticket sizes also declined (-1.7%) on a monthly basis.
Professional, Scientific, and Technical Services are still seeing nice growth in sales (+15.2%) and transactions (+13.9%) year-over-year. Month-over-month performance was also strong, with total sales and transactions up 3.6% vs. June.
Gains were across a broad range of services, some of which saw increased demand following harsh weather events in June. Specialty Trade Contractors grew sales (+5.7%) and transactions (+2.5%) year-over-year. Month-over-month sales (+3%) also rose, despite total transactions (+0.1%) holding steady. Demand for air conditioning and related services drove most of the spending increase, along with broader demand for general construction and carpentry.
Additional YoY growth categories included Web Search, Libraries and Information Services (+20.4%), Amusement/Gambling/Recreation (+8.3%) and Food Manufacturing (+8.1%); the sharpest annual declines were in Real Estate (-12.3%) and Transportation Equipment Manufacturing (-10.5%).
Utilities (+6.2%) and Hospitals (+5.7%) were the fastest-growing small business categories on a monthly basis; Performing Arts, Spectator Sports and Related Industries (-2.4%), Accommodation (-1.2%) and Insurance (-0.1%) each saw modest month-over-month declines.
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